Oak Grove Financial

About Oak Grove Financial

Based in Maple Grove, MN, Oak Grove Financial is a private lender providing funding across the country. Their lending focus is primarily on hard money loans for commercial properties. They offer loans on the following property types: single family homes, multi-family, apartments, senior housing facilities, and medical facilities.

Loan Types Offered: Commercial Hard Money Loans

Property Types Covered: Single Family, Multi Family, Apartment, Assisted Living, Medical

Areas Served: National

Lending Guidelines for Oak Grove Financial

Below are the general loan guidelines published on the Oak Grove Financial website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Oak Grove Financial.

Loan Example 1

Kari is a business owner in Tulsa, OK. She wants to purchase a new retail space for her company but she is not able to obtain a commercial mortgage from her bank because of her below average credit rating. She turns to Oak Grove Financial for a commercial hard money loan to close the purchase. The cost of the property is $250,000 and the lending company agrees to fund 70% of the price (the loan to value / "LTV"), or $175,000. The remaining $75,000 will have to be funded by the borrower when the deal is closed. The deal also dictates a 6 month length, a 14% interest rate, interest-only payments paid monthly with a final payment when the note expires (with no pre-payment penalty), and a 2 point origination charge. Kari can eliminate the loan at any point in time if she pays back the $175,000 of principle, but she will must make $2,042 /month interest payments ($175,000 principle amount x 14% interest / 12 months in a year) in the meantime, or up to the point the note expires. Because there isn't a pre-payment penalty, the only additional expense she will have is the $3,500 origination cost which she will contribute at the close.

Loan Example 2

Rosetta takes out a loan from Oak Grove Financial so she can rehab a townhouse to re-sell in San Antonio, TX. The deal has the following terms:

$370,000 purchase price
75% loan to value (LTV)
6 month term
8% rate of interest
5% origination fee

Assuming a $444,000 sales price after the 6 month term, the final numbers for the project would look like the following:

$444,000 sales price
- $277,500 principle (75% LTV)
- $92,500 down payment (25% on 75% LTV)
- $13,875 origination fee (5% of the $277,500 principle)
- $11,100 total interest paid (6 months x 8% interest)
-----------------------
= $49,025 gross profit (does not include taxes or rehab costs)

No Reviews Yet

Oak Grove Financial currently has no reviews. To add a review now, click the link below:

Write a Review for Oak Grove Financial